Gen-Probe agrees $3.7 billion acquisition by Hologic

USA-based Hologic (Nasdaq: HOLX) said it has reached an agreement to acquire Gen-Probe (Nasdaq: ASDAQ) for $82.75 per share in cash, or a total enterprise value of approximately $3.7 billion. The all-cash transaction, approved by both companies’ boards of directors, is expected to be funded through available cash and additional financing of term loans and high yield securities. The transaction is expected to be completed in the second half of calendar 2012.

The transaction delivers a strong growth profile with attractive economics and is expected to be $0.20 accretive to Hologic's adjusted earnings per share in the first fiscal year after close and significantly more accretive thereafter. Hologic also expects the transaction to accelerate top and bottom line growth rates. The combined company expects to realize around $75 million in cost synergies within three years following the close of the transaction. In addition, the combined company expects to have strong free cash flows, which will be used primarily to reduce debt with the expectation to return to pre-transaction leverage levels within three years.

Combined company to have $2.4 billion revenues